Cboe Global Markets (CBOE) AI Stock Analysis

• Market Cap: $25.69B
• Dividend Yield: 1.09%
• Average Volume (3M): 788.05K
• Price to Earnings (P/E): 28.8
• Beta (1Y): -0.08
• Revenue Growth: 18.99%
• EPS Growth: 17.97%
• Country: US
• Employees: 1,685
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 2.67
• Shares Outstanding: 104,590,130
• 10 Day Avg. Volume: 800,044
• 30 Day Avg. Volume: 788,051
• PEG Ratio: 24.03
• Price to Book (P/B): 4.80
• Price to Sales (P/S): 5.02
• P/FCF Ratio: 19.75
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $251.89
• Price Target Upside: 2.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 75 Outperform
• Price Target: $277.00 ▲(12.77% Upside)

Cboe Global Markets demonstrates strong financial performance and growth, particularly in its derivatives and data segments, which are key strengths. The technical indicators suggest a positive trend, although some bearish signals are present. Valuation metrics indicate potential overvaluation, but the company's strategic initiatives and robust earnings performance contribute positively to the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, allowing for reinvestment in growth initiatives and shareholder returns.

Strategic Realignment

Strategic focus on core strengths positions Cboe for sustainable growth in dynamic markets, enhancing competitive advantage.

Negative Factors

Closure of Japan Equities Business

Exiting the Japan equities business could limit market reach and incur costs, impacting short-term financial performance.

Futures Segment Decline

Declining futures revenue may signal challenges in maintaining market share, affecting overall revenue diversification.

Cost Reductions in Listings

Cost reductions in listings may indicate competitive pressures or strategic shifts, potentially affecting revenue streams.

Cboe Global Markets Business Overview & Revenue Model

Company Description

Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange worldwide. It operates through five segments: Options, North American Equities, Futures, Europe and Asia Pacific, and Global FX. The Options segment trades in listed market indices. The North American Equities segment trades in listed U.S. and Canadian equities. This segment also offers exchange-traded products (ETP) transaction and ETP listing services. The Futures segment trades in futures. The Europe and Asia Pacific segment offers pan-European listed equities and derivatives transaction services, ETPs, exchange-traded commodities, and international depository receipts, as well as ETP listings and clearing services. The Global FX segment provides institutional foreign exchange (FX) trading and non-deliverable forward FX transactions services. The company has strategic relationships with S&P Dow Jones Indices, LLC; FTSE International Limited; Frank Russell Company; MSCI Inc.; and DJI Opco, LLC. The company was formerly known as CBOE Holdings, Inc. and changed its name to Cboe Global Markets, Inc. in October 2017. Cboe Global Markets, Inc. was founded in 1973 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Cboe Global Markets generates revenue through multiple streams, primarily from transaction fees, which are charged for the execution of trades on its exchanges. Additionally, the company earns revenue from the sale of market data and technology solutions, providing vital information and tools to traders and institutions. CBOE also benefits from listing fees for new products and securities on its exchanges. Significant partnerships with financial institutions and technology firms enhance its offerings and capabilities, contributing to its earnings. Moreover, revenue from proprietary products, such as the Cboe Volatility Index (VIX), further bolsters its financial performance.

Cboe Global Markets Financial Statement Overview

Summary

Cboe Global Markets demonstrates strong financial health with robust revenue growth, efficient operations, and solid cash flow generation. The company maintains a healthy balance sheet with manageable leverage and strong equity.

Income Statement

Cboe Global Markets shows strong income performance with a robust Gross Profit Margin of 67.7% and a solid Net Profit Margin of 19.8% for TTM. Revenue has grown steadily, with a growth rate of 10.7% in the most recent period, indicating a positive trajectory. EBIT and EBITDA margins are also strong at 28.7% and 31.5% respectively, reflecting good operational efficiency.

Balance Sheet

The company's balance sheet is solid with a healthy Debt-to-Equity Ratio of 0.34, indicating manageable leverage. Return on Equity stands at 19.3%, showing effective capital utilization. The Equity Ratio is 51.6%, indicating a strong equity base supporting its assets.

Cash Flow

Cboe's cash flow performance is strong, with a Free Cash Flow Growth Rate of 74.1%, and Free Cash Flow to Net Income Ratio of 2.01, indicating robust cash generation relative to net income. The Operating Cash Flow to Net Income Ratio is 2.09, reflecting efficient cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.62B	4.09B	3.77B	3.96B	3.49B	3.43B
Gross Profit	3.21B	2.07B	1.92B	1.74B	1.19B	1.03B
EBITDA	1.56B	1.27B	1.27B	1.14B	988.90M	865.90M
Net Income	981.80M	764.90M	761.40M	235.00M	529.00M	468.20M
Balance Sheet
Total Assets	9.07B	7.79B	7.49B	7.00B	6.81B	6.52B
Cash, Cash Equivalents and Short-Term Investments	1.50B	1.03B	600.70M	524.40M	379.00M	337.80M
Total Debt	1.57B	1.60B	1.61B	1.87B	1.43B	1.34B
Total Liabilities	4.18B	3.51B	3.50B	3.53B	3.21B	3.17B
Stockholders Equity	4.88B	4.28B	3.98B	3.47B	3.60B	3.35B
Cash Flow
Free Cash Flow	615.30M	1.04B	1.03B	591.30M	545.80M	1.41B
Operating Cash Flow	690.10M	1.10B	1.08B	651.10M	596.80M	1.46B
Investing Cash Flow	-95.90M	-141.80M	-55.10M	-835.10M	-352.70M	-430.50M
Financing Cash Flow	-364.80M	-495.00M	-656.10M	81.70M	-200.30M	-201.70M

Cboe Global Markets Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 245.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBOE, the sentiment is Positive. The current price of 245.64 is above the 20-day moving average (MA) of 238.96, above the 50-day MA of 238.46, and above the 200-day MA of 226.05, indicating a bullish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 58.36 is Neutral, neither overbought nor oversold. The STOCH value of 46.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBOE.

Cboe Global Markets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CME	―	$95.74B	25.73	13.35%	4.03%	5.84%	8.51%
CBOE	―	$25.69B	28.80	20.64%	1.09%	18.99%	17.97%
SPGI	―	$147.53B	35.42	12.57%	0.78%	9.04%	21.35%
NDAQ	―	$48.81B	30.48	14.07%	1.17%	16.41%	68.03%
ICE	―	$83.41B	26.63	11.32%	1.29%	8.96%	30.16%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MSCI	―	$44.22B	37.31	―	1.18%	9.02%	3.45%

Cboe Global Markets Corporate Events

Cboe Global Markets Reports Record Revenue Growth

Cboe Global Markets’ recent earnings call painted a picture of robust financial health, underscored by record-breaking revenue growth and strategic cost management. Despite some challenges, such as the closure of its Japan equities business and a decline in futures segment revenue, the overall sentiment was positive, driven by strong performance in derivatives and data businesses.

Cboe Global Markets Reports Strong Q2 2025 Results

Cboe Global Markets, Inc., a leading derivatives and securities exchange network, provides trading, clearing, and investment solutions across various asset classes globally, including equities, derivatives, and FX. In its second quarter of 2025 earnings report, Cboe Global Markets announced a record net revenue of $587.3 million, marking a 14% increase from the previous year. The company’s diluted earnings per share (EPS) rose by 68% to $2.23, primarily due to the absence of a non-recurring impairment of intangible assets that occurred in 2024. Adjusted diluted EPS also saw a 14% increase, reaching $2.46.